Chinese state firms launch $774m science & tech fund in Shanghai

Four months after the launch of China’s STAR Market aimed at improving the country’s market liquidity and tech self-sufficiency, a group of state-backed companies have jointly set up a fund of funds (FoF) with 5.5 billion yuan ($774.40 million) in initial capital to back tech investments.

The new fund, dubbed Pudong Science and Technology Innovation Fund, was launched by Shanghai State-Owned Assets Supervision and Administration Commission, the local assets watchdog; China Construction Bank (CCB), the country’s second-largest lender; and Bank of Shanghai in eastern China’s financial hub where the country’s new Nasdaq-style tech board STAR Market is located.

The fund aims to create a pool of industry sub-funds worth a total of 20 billion yuan ($2.81 billion) for investments in six major areas, namely integrated circuits, smart manufacturing, aviation and aerospace, innovation in medicine, autonomous vehicles, and big data.

Four state-owned high-tech park developers and operators in Shanghai, including Shanghai Zhangjiang Group, will lead the fundraising process for the sub-funds and raise capital from the private sector. These funds are expected to start investing this year.

The local authorities and state-backed companies in Shanghai are seeking to drive the development of startups as part of a broader push by Beijing to encourage investments in domestic tech innovators.

The STAR Market, one of the most prominent moves undertaken by the government, has witnessed 64 listings as of September 2019, according to information disclosed by the Shanghai stock exchange.

“The launch of the FoF and sub-funds in Shanghai will further enhance capital’s role in promoting the development of real economy, helping to realize the deep integration between finance and technology,” said Bai Tinghui, director of Shanghai State-Owned Assets Supervision and Administration Commission.

“Companies with government background will shift their focus from ‘hard sectors’ like regional development and infrastructure construction to ‘soft sectors’ including fund investment and industry development,” said Bai.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.